The new credit backs the mining company's expansion of a Montana mine and will also take out existing debt. Officials at former lead arrangers Bank of Nova Scotia, Deutsche Bank and Barclays Capital did not return calls seeking comment. A TD official declined to comment. Stillwater is based in Denver.
Thomas Watters, analyst at Standard & Poor's, said that there are a number of inherent and unavoidable industry issues that could potentially dissuade banks from lending to the BB+/Ba2 credit. He added, however, that Stillwater has its own problems. "They're having production problems. There's a rail hauling system to take out waste that offers inadequate volume support," he said. "[Stillwater] has missed the eight-ball before, but they've seemed to turn a corner. "